Does Ever Rising Salary Cap Put NFL Parity in Danger?

In 2005, former NFL Commissioner Paul Tagliabue closed out a stellar tenure by negotiating a new collective bargaining agreement with the NFL Players Association. With that new agreement, the NFL salary cap jumped from just over $85 million to a whopping $102 million dollars providing cap releif to several NFL teams. This season, the salary cap has swollen to $109 million. Is the salary cap reaching a point where small-market teams cannot afford to reach the limit leaving big-market teams the ability to start stockpiling talent?

June 1, previously a red-letter day in NFL free agency came and went with a relative whimper this year. Usually a day where NFL teams discard high-priced veterans to find salary cap relief, many teams found themselves comfortably under the $109 million cap without releasing some of their bigger names.

Since the new CBA was signed in 2005, the cap has grown an astounding 27.5%. In 2005 alone, the cap grew nearly 20% from $85.5 million to $102 million. Even big-spenders like the Dallas Cowboys suddenly found themselves in the tens of millions under the cap. At the time the CBA was signed, small-market owners such as Cleveland's Paul Brown and Buffalo's Ralph Wilson expressed concerns that under the new CBA, even with provisions that spread some of the wealth to them, that the runaway cap would eventually spell doom for their ability to compete.

With the rising cap comes rising contract demands. But with more and more teams and agents opting to place roster bonuses on March 1 instead of June 1, free-agents find themselves released at the beginning of free-agency while teams are still flush with cash. So contracts will continue to rise because the market has adjusted to bear it.

The gap between the role-players and the superstars is also growing. In a case of entertainment mirroring life, the NFL middle class is slowly disappearing. While the CBA stipulates minimum salaries based on number of years, the real dollars are spent on signing bonuses and roster bonuses. A mid-level player may see a roster bonus in the tens of thousands if at all. But players like Terrell Owens of the Dallas Cowboys received a $3 million bonus on June 1st just for being on the roster.

The NFL today is a league constantly in transition. As contracts of star players expire, more and more choose to enter the free agent bonanza rather than sign an offer sheet with their current team unless the offer already puts them among the top paid players at their position.

As the cap continues to swell, more and more of these free agents in smaller markets will move on where the pastures are as green as the money. Even with room under the cap, the Cleveland Browns of the world will eventually be at the limits of their budget before they are at the cap limit. Will Lee Evans make it to a second contract in Buffalo? It depends on whether or not the cap continues to soar.

On the other hand, General Managers across the league have learned to work the salary cap very well. A little creative financing can go a long way. But unless the profit shares to the smaller market teams grow in proportion to the cap, it is very feasible to say that buying consecutive championships will return to the NFL.